Integrating the dialectic perspectives of resource-based view and industrial organization theory for competitive advantage – a review and research agenda

Purpose Academic dialogue related to ‘organizational performance’ in strategic management has primarily centred around the industrial organization theory (IO) and resource-based view (RBV). Both perspectives, though conceptually dialectic, have served as primary competing theories governing research studies in the domain of strategic management. However, the confluence of these theoretical perspectives has not been adequately explored to advance a shared view of competitive advantage. This study aims to explore the likelihood of embedded commonalities between RBV and IO. Design/methodology/approach A bibliometric analysis was conducted to visualize the intellectual map of studies and knowledge development encompassing these theories. This was followed by a comprehensive literature review to understand how the business environment (BE) and organizational capabilities have contributed towards attaining competitive advantage. Findings This study established that connecting the intellectual boundaries of these theoretical perspectives would facilitate better comprehension of the processes and outcomes in organizations. Integrating the knowledge emerging out of this methodological blend, a convergence framework connecting the intellectual boundaries of both theories was presented. Practical implications The framework that emerged from this study would help in better understanding of organizational behaviour from a dual theoretical lens. It would also motivate future studies to consider RBV and IO as complementary theories rather than the current narrative of competing theories. Social implications This study added to the efforts to achieve equilibrium between the BE and internal capabilities of organizations so as to maximize positive social externalities. Originality/value This study contributed to the limited attempts to leverage shared knowledge from a dual perspective using a comprehensive literature review in sequential combination with bibliometric analysis.